Venkaiah also dismissed the allegations that the government is stifling the freedom of expression.
Chidambaram had on Saturday alleged that there was a "pervasive, systematic and infringed control" over the owners of media by the Narendra Modi government.
"The words used by Chidambaram are astonishing. We are for freedom of press and expression. It is absurd, baseless and cheap criticism of the government," Venkaiah told reporters here.
He said the Congress has always believed in "pick and choose while encouraging those sections of media who toed their line and kept away those who were critical of the party and the government."
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Venkaiah said it was Chidambaram who had proposed the defamation law to curb freedom of media and "he is now giving us sermons."
He accused the Congress of "stooping so low" to berate the PM. "...Every such remark was widely reported, but we never acted against any media writing about them.
"It is blatantly false and unfair to allege that the Modi government is stifling the freedom of expression. We believe in freedom of press and we believe in freedom of expression," Venkaiah said.
"It (Congress) is a single family enterprise and such parties do not respect democracy," Venkaiah said.
He said that instead of raising "non-issues in the context of fast growing disconnect with the people," the Congress and their friends need to introspect and reiterate their commitment to democratic way of functioning in a responsible manner.
"This government welcomes dissent, disapproval and differences of opinions and perception. However, this should not be used as a means to flare up passions of anti-national sentiments, thereby creating an environment of false reality and indulging in manufactured dissent," Venkaiah added.
The YSR Congress has also demanded bringing in a legislation to stop defections of legislators.
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